You can still get a competitive AUD/GBP exchange rate online.
Currency exchange shops around Australia experienced "mayhem" on the afternoon of Friday 24 June, following Britain's "Brexit" vote to leave the European Union. The Pound Sterling fell to its lowest point in more than 30 years and some major banks temporarily suspended foreign exchange involving the Pound Sterling.
In the GBP's steepest one-day fall, the pound closed at US$1.36 (AU$0.55) on that Friday. Aussies flocked to exchange kiosks to "secure pounds" and queued for lengthy periods. The good news is that if you want to send money to family and friends in Britain, you can still lock in an desirable exchange rate for your international money transfer.
Compare AUD/GBP money transfer exchange rates below
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British Pounds hits lowest since 1985
The Pound shed more than 10% of its value before it started to recover. Even experts are unsure of what the future holds for the GBP as the process of leaving the EU is untested, and expected to take years to fully resolve. The AUD/GBP rates has been extremely volatile in the run-up to the UK EU referendum, with the Aussie Dollar seeing a sharp increase. The consequences of Brexit will have implications for the global market and the Aussie Dollar will be no exception.
You can lock in a competitive exchange rate using a money transfer
Many international money transfer services offer limit orders so you can lock in a desirable GBP exchange rate for any future transfers. This is particularly handy for Australian firms doing business in the UK as you can purchase more goods from the UK with less Aussie dollars. If you want to transfer money overseas to the UK now or at a future date, it may be a good time to lock in a GBP rate before it starts recovering.
The beneficiary of the funds will usually need to have a bank account established in the UK, though there are some exceptions. During the international money transfer process, you will need to indicate a SWIFT number, BSB and account number.
If you wish to invest in the GBP then an international money transfer may not be suitable. These are only handy if you intend to send GBP to a beneficiary in a future point in time.
Exchange rate history: AUD/GBP
Introduced in 1966, the Australian Dollar replaced the Australian Pound and began life as a fixed currency. A managed float occurred in 1971 and by the start of 1984, a floating exchange rate system had been introduced. The role of managing the stability of the Australian Dollar falls to the Reserve Bank of Australia.
Since its introduction, the Aussie Dollar has consistently traded at a much lower value than the Great British Pound. Across the past 10 years, the Dollar has traded at a low of £0.38 in October of 2008 and a high of £0.69 in March 2013, with an average during this period of £0.53. The high point in value for the Aussie Dollar came as the global recession hit home across the UK and Europe. Combined with a quantitative easing policy implemented by the UK government, this saw the value of the Pound fall relative to many other major global currencies.
British Pound historically strong against Australian Dollar
The Pound Sterling and the Australian Dollar respectively represent the fourth- and fifth-most traded currencies in the world, but it’s the Pound which has always performed stronger against its younger rival. The Australian Dollar has traditionally traded in quite a low range against the British Pound, as the 10 year average of £0.53 shows.
Australia’s much-publicised mining boom, which was fuelled by China’s strong growth, led to a strong Australian economy during times when other countries were reeling from the Global Financial Crisis of 2008. However, by the time the Dollar experienced its strongest performance against the British Pound in 2013, the growth rate of the Australian economy had begun to slow.
The rise in value of the Australian Dollar relative to the Pound could be attributed to a number of factors in the UK. The government’s quantitative easing policy was designed to increase the supply of money and therefore led to a drop in the Pound’s value against other major currencies, while high debt levels and poor growth figures led to an overall weakening in the performance of the Pound.
AUD fluctuates against a weaker GBP
The year 2015 has seen a weakening of the Australian Dollar against many major currencies around the world. Continued poor growth results and future predictions coming out of China have contributed to a fall in the value of the Australian currency, with the Dollar trading around the £0.46 to £0.47 mark during October 2015.
In the UK there is a generally optimistic outlook for the Pound. Steady performance is expected by many analysts towards the end of 2015 and into 2016, resulting in continued strong value against the Australian Dollar.
However, the rumours and speculation surrounding the Bank of England’s plans for interest rates, with previously mooted rate hikes possibly being put on the back burner, will influence the Pound’s performance moving forward.